LSME604 - Managing Change: Uber's Strategic Plan & Implementation

This case study analyzes Uber's challenges in a dynamic business environment, focusing on competition, disgruntled drivers, and public safety concerns. It evaluates change management models, particularly Kotter's 8-step theory, to propose a strategic plan for Uber. The plan aims to address employee dissatisfaction by reclassifying drivers, improving public safety through stricter regulations, and gaining stakeholder support. The analysis emphasizes the importance of managing change effectively to ensure long-term sustainability and growth for Uber, advocating for a shift in business model and a focus on employee satisfaction and public trust. Desklib offers a wealth of resources, including past papers and solved assignments, to aid students in understanding complex topics like change management.

Managing change

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Identification and Analysis of situation.................................................................................3
Evaluation of different models, theories and concepts that can be used in managing the
change process and also how the change process adopted will be managed to gain the
support and involvement of Uber’s stakeholders...................................................................5
Justification of change process and develop a strategic plan for implementation of process8
Discussion on how the strategic plan produced will be implemented for Uber and an
analysis of the benefits and sustainability of the proposed changes....................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
Books and Journals:.............................................................................................................12
Online:..................................................................................................................................13

INTRODUCTION
The world is changing every which includes customer trends, economy and
technology. It becomes necessary for every organisation to accept change because those
businesses which are failing to embrace changes are not able to survive in the market (Sartori
and et.al., 2018). Changes can be possible internally as well as externally in the working
environment of any organisation. It is necessary to understand by companies that they need to
accept changes with the right strategy. This will help them to stay longer in the market.
Without it, it is not possible for any organisation to survive in the market for long term
periods. In this context, this report will use a case study of Uber which shows how change is
impacted their organisation's performance. It will also include the management of change
with the right is strategies and development of plans. Uber is the organisation of America that
has headquartered in California, United States. This report will also discuss the solutions in
order to resolve issue that faced by employees in acceptance of change.
MAIN BODY
Identification and Analysis of situation
Today's business world is becoming very dynamic in nature and because of that every
organisation needs to accept the changes so that they can run their business in an effective
way. It is identified that changes can be occurred by internal and external environment
factors. It is important for organisation to identify and analyse the need of change in working
environment. Changes constant in nature which needs to be accepted by organisation then
only they are able to survive in the market (Arnaout and Esposito, 2018). Without acceptance
of changes, it is not possible for any organisation to run their business smoothly. From the
case study of Uber, it is identified that change needs to be managed by your organisation
which includes a process. The process involves a cycle of diagnosis, planning monitoring and
evaluation of change. Uber is facing many challenges in their organisation. It is identified that
running a business in the market is not an easy task as it is found that business environment is
changing every day. For example, there is a continuous change in consumer trend which
provides a great impact on the organisational performance and decisions making (Avery,
2019). Some important challenges which are identified in the working environment of Uber
are as follows:
Competition

It is analysed from the case study that Uber is facing a tough competition as they are
not able to increase the prices. Due to a tough competition such as Ola, Bolt and Kapten, it is
identified that these are plenty rivals in the world. Competitors are following Uber as they are
pouches and promotion to the customers (Parnell, Stone and Aravopoulou, 2018). They are
also providing incentive to drivers. In order to stay in the market, Uber is reducing their
prices in order to gain trade. In addition to this, it is also identified that Uber is providing
additional incentives to the driver so that they cannot work for someone else. There are
additional incentives include free insurance and gym passes. In the taxi market, company has
never been very profitable and that's why there is no sign of changing. So, it is not necessary
for Uber to put some changes as they are doing their best.
Disgruntled drivers
Every organisation knows that human resources the main and important resource in
order to run a business (Shevchenko and et.al., 2021). In the case of Uber, it is found that
they are classified their employees as independent contractors and also making them
ineligible for minimum wages. The employees are not eligible for overtime and
compensation insurance which becomes a big issue for employees. This issue is already
noticed by over and it is forced to start classified drivers as employees. But it is identified that
this change required a fundamental change in their business model. It is not an easy task for
Uber. They need to entirely change the business model and all the important activities of
organisation. It is important to know that Uber is facing a dissatisfaction from their
employees which is not a good sign for the success and growth of company. Some important
reasons found by company is they are investing in autonomous vehicle which are responsible
for reducing the number of drivers. In addition to this, it is also identified that company is
planning to reduce payment to driver so that they can increase their profits which is not a
good option for improving the financial performance of company (Direction, 2021). It is a
fact that it reduces the satisfaction of drivers. When employees are not satisfied then it
becomes a negative point for organisation as without employees they are not able to run their
business in an effective way. So that's why, it is analysed at company needs to do changes in
their workplace.
Public safety and security concern
In cab services, public safety and security concern should be at the top most priority.
This is very important to note that for every cab service organisation to provide safety and

security to the public that they are in safe places (Lyman and Daloisio, 2018). But in the case
of Uber, it is found that they are not appear to have the control which is necessary in transport
services. They are not controlling and assuring passengers for the purpose of adequate safety
standards. It is identified that this company is stand in the top five market in the world but
still it marked reluctance. In 2017, it is identified that authority refuse to renew the licence of
Uber because of only public safety and security concerns. According to their research, they
found that over 14,000 Uber trips in London are completed with fake identification. It is
found to be a big issue in London which becomes unnecessary point to change in the Uber
system. It is found that due to their previous activities, the licence may be revoked. It is found
that this situation needs a change in their system if they want to run their business in the
market.
From the analysis of Uber's situation, it is analysed at two important areas which need
a change are in the over system and for employees. It becomes necessary for organisation to
change their business model as now the need to consider their drivers as employees rather
than as independent contractors. Then only employees are able to satisfy and give their best
in the market. It is also found that public safety and security concern should give in the
priority and because of that they need to change their system. The need to make tough rules
and regulations for drivers when they are getting licence to drive. In addition to this, the need
to change the whole Uber system so that they can track any an authorised person who is
driving a vehicle without their permission.
Evaluation of different models, theories and concepts that can be used in managing the
change process and also how the change process adopted will be managed to gain the support
and involvement of Uber’s stakeholders.
Change is constant which is necessary to accept by organisation. But it is not an easy
as it looks like. It is found that people are resistant to change and they are not easily accept
the change. Even if they are ready to accept the change, still they are not comfortable to work
in change. Employees feel hesitated and uncomfortable to work in changes. It is very
important for organisation to understand this situation (Visser and van Scheers, 2018). For
that purpose, it becomes necessary to use different models and theories which helps them to
manage the change process. It is identified that there are many models, theories and concepts
are available in the market which can used by company in order to manage the change
process. It is very short that company needs to adopt change process but along with this,
delete to ready for managing the change process so that they can gain the support and

involvement of stakeholders. Stakeholders are people who are playing an important role in
the success and growth of any organisation. These are the persons who show their
participation in each and every function. It is crucial for organisation to understand the needs
and wants of stakeholders as they are also investors of company. So that's why, some
important models and theories are mentioned below which helps to manage the change
process in an effective way:
Kotter’s change management theory
It is a theory which is created by John Kotter who is primary focus on people involved
in a change process and their psychology (Liang, 2018). He is the Harvard professor and
change management export who provided eight steps that shoes how change can be managed
by an organisation. All the eight steps of mentioned below:
Create a sense of urgency: It is found to be the first and foremost step which is
creating a sense of urgency. This is tab helps other to see that why changes necessary in the
organisation. It can be show with the help of aspirational opportunity statement which is able
to communicate the importance of accepting change in urgency.
Build a guiding coalition: It is the next step in which organisation needs a coalition
of effective people so that they can guide, co-ordinate and communicate its activities. It can
be achieved by identifying the effective change leaders which may be the stakeholders of
company. It is very important for an organisation to involve key stakeholders towards the
change process. Formulating a powerful change collision is very important in order to
achieve the desired goals and objectives of company.
Developing a vision and a strategy: This is very important for an organisation to
determine the core values by defining strategies and vision for the purpose of accepting
change in organisation. It is necessary for organisation to ensure that change leaders should
describe the vision in an effective way so that each and every people can understand that why
change is necessary and what they need to be follow.
Communicating the vision: This is very important that company needs to
communicate the change in and convincing and powerful way. It is important to note that
communicating the vision of change to people is very important in order to handle the
concerned and issues.

Removing obstacles: It is an important step in which organisation leads to identify the
ways which helps to remove obstacles. Changes is constant and people need to accept it. But
it is very important to check barriers as people are resistance to change. In order to remove
obstacles which is involved in the process of change, company needs to implement proactive
actions.
Creating short term wins: Company needs to create short term loans in the change
process so that people feel a victory in the early stages of change (Zighan and Abualqumboz,
2022). It is very important to make short term wins as it reduces the possibility of failure. In
addition to this, it is necessary for company to record the contribution of people.
Consolidating gains: It is very important for an organisation to analyse all the success
stories in order to improve the individual experience. It leads to achieve continuous
improvement in the organisation. This is very important as it helps to gain profits.
Anchoring change in corporate culture: After implementing the change in
organisation, it is very important for company to anchor change in the corporate culture so
that it becomes and an integral part of organisational culture. It also ensures the support of
existing company leaders in order to extend change.
Kurt Lewin change management model
Kurt Lewin change management model is one of the cornerstone model which is use
in present scenario. According to Lewin change in organisation not easy and simple. This
change influences the people to accept the new change in our organisation. The change
instigates and motivate organisation employees to become flexible.
Kurt Lewin has three stage which a company instigate ready for the new change in the
organisation.
1. Unfreeze: It is the first stage of transition. This is about getting ready to change. It
getting to a point of understanding that change is necessary and ready to move our
current comfort zone. The first stage is preparing ourselves or other for ready for
change. Its involve people aware of the need of the change.
2. Change: Kurt Lewin is aware of the change the change is not an event but rather than
a process. That’s called transition. This is the inner movement or journey we make a
reaction in change (Dahlmann and Roehrich, 2019). When people are unfrozen

change in new way of being. In this stage people in fearful and unsure. Because there
is no perfect position so they can change according to as par situation.
3. Freezing: This stage all about of establish stability when change come in the stage.
The change can be accepted and the new thing become. People become familiar about
the change and easily comfortable about the routines.
Justification of change process and develop a strategic plan for implementation of process
Change process can be undertaken by a business organisation whenever it is required.
The nature of business environment is dynamic and there are so many changes in the external
environment. In order to operate smoothly the company must take actions according to the
changes in the external environment. Uber is facing certain challenges that enhance the need
of change. The company must keep on checking their external and internal factors and
capabilities so that they are able to analyse the need for change. If a company is able to
understand the requirement of change, then they are able to attain success. It is seen that
employees are resistant to change and this causes issue for the company. The company that is
able to manage the change is generally more successful (Jayatilleke and Lai, 2018). The main
reason of adopting change is to come out of the challenges that present in the market. There is
need of forming strategic plan that will help the company to manage the change properly. The
fast company is able to understand about the change the better it is for their performance.
Uber has adopted changes in their operations due to high competition that is faced by them.
There are various other firms such as Bolt, Ola and Kapten that are working in the same
industry. This enhances competition for them and enhances the need of bring change in the
market.
The safety and security of customers is also enhancing. The companies operating in
the market also need to change their strategies so that they are able to carry on the work
properly. Uber analyses the requirement of the customers and then work to satisfy them. Uber
needs to bring change in their safety and security policy that will make them strong player in
the market. There are certain issues that are being faced by the company and to come out of
the issue, there is need of bringing change and letting the employees understand the
importance.
Another challenge faced by company was unsatisfied employees. There is need of
keeping the employees satisfied and motivated so that overall work of the company can be
managed properly. By bringing changes and using right policies the company will be able to

carry on the work properly. The needs and wants of the employees need to be considered for
achievement of the goals and objectives. By taking feedback from the employees they are
able to manage the work properly (Galli, 2018). There are certain change management
models that are being used by Uber so that the success can be attained. By managing
performance a company is able to carry on the operations of the company properly. There is
need of carrying research related to the changes in environment by carrying regular research.
Also, right actions must be taken by company at the same time to attain successful position in
market. Uber has basically analysed the weaknesses and then made all the necessary changes
to overcome the challenges.
It is very important for an organisation that they need to develop strategic plan for
implementing the change process in the organisation. For that purpose, some important steps
should be taken which are mentioned below:
 The first and foremost step is to determine the need for change in the organisation. In
order to develop a strategic plan, it is crucial for Uber the day need to determine why
they want to develop a plan for implementing a change. That means why the need a
change in the market. Uber identified they need to change a system as well as
business model.
 The second step is to perform a stakeholder analysis for that Uber is able to identify
that each and every stakeholder is taking an interest in the process of implementing a
change in the organisation or not.
 Building support for change is an important step in which organisation wants to
identify the person who are ready for accepting change and also become a leader of
change. This kind of person is very helpful in order to build a team so that they are
able to convince other people.
 The fourth step is to create a change network. It is a step that which establish a change
management team that helps to make the implementation is smoother. Along with the
change management team, there are more members which can be included in change
network such as sponsors, advocates, change agents and targets.
 Preparing a change management plan is found to be the most important step in which
organisation need to identify the necessary changes and develop a plan (Blake, 2019).
It is basically including a guide of assigning activities to the customers. It should
include a list of tools and resources which are required for completion of task.

 Identifying and managing obstacles is also a necessary step because implementation
process is not an easy as it looks likes. It is not possible that implementation process
always go exactly as planned. This is the main reason that development of
contingency plan is very important to navigate potential challenges (Foerster, 2018).
Identification and managing of obstacles is found to be important for an organisation
so that they can implement their process of change in an effective way.
 Last but not least the evaluation of change is found to be a stamp in which company
implements that change now it is the stage where the need to monitor its impact in
order to determine its effectiveness. It is very important for an organisation to
compare pre and post change process so that they can assess differences between
them.
Discussion on how the strategic plan produced will be implemented for Uber and an analysis
of the benefits and sustainability of the proposed changes.
Uber is facing an issue of system in which they are found to be failed in public safety
and security concerns. It is identified that for cabs services, they need to give priority to the
public safety and security concern. The reason behind is people are facing many issues and
problems due to the unsafe area and space special in the case of women. Uber is in the
situation where they are caught by 14000 trips in London which was taken by 43 drivers with
fake identification. It becomes very necessary for an organisation to change the Uber system
in which they need to find out the ways that how they can upgrade their system (Bitzer and
et.al., 2021). It requires upgradation in the system so that each and every employee will not
face any problem during like this. In addition to this, there is one more challenge that faced
by Uber is business model. It is found that the business model of Uber is not accepting
drivers as an employee as they are considered as independent drivers. It is found that this type
is not as effective as it looks likes. These issues can be resolved with the help of a strategic
plan.
There is a strategic plan which produced for the implementation of change process in
Uber. It is identified that development of a strategic plan is not an easy task. It is very
important for organisation to take right steps in order to manage change. It is identified that
with the help of implementing a strategic plan in an effective way, an organisation needs to
remove all the obstacles which comes in the path of change (Usiak, 2021). It is very obvious
that there are many benefits sustainability will be enjoy in the organisation after the proposed
changes in Uber. Company is able to achieve their main objective. For the success and

growth of any organisation, it is very important that they change should be always provide
benefit to the company. It should not give any another problem. From the change in Uber
such as business model and system, their customers will get more satisfied and also able to
enjoy the trips provided by company. The main issue of customers which is public safety and
security concern will be definitely resolved with the help of changes. It is important to note
that this issue provided a great impact on the system of Uber. This is the main reason that
company wants to change their system but it is not an easy task for them. It required a lot of
information which are recorded in the company should be transform in another system so that
they can renew their system and run the trips accordingly. In their new system, it is identified
that company is able to track the trips in an easy way. This becomes very helpful in order to
satisfy the goal of public safety and security concern. With the proposed changes in business
model, it is found that employees are playing an important role in the organisation and the
new changes will definitely provide them confident. The drivers of Uber are not considered
as employees but after the change now they are considered as employees which enables them
to take many benefits that enjoyed by employees of company.
CONCLUSION
It can be concluded from the above discussion that change is an important concept
which need to be understand by each and every organisation. It is found that change is
constant in nature which need to be accepted and adopted by company in order to run their
business in an effective way. It is analysed that company are not able to survive in the market
without accepting the change. This is the main reason that change required to manage. It can
be possible with the help of using different types of theories and models which includes
Kotter's change management theory, Lewin's change management model, etc. In addition to
this, report also suggested that company needs to make a strategic plan so that they can
implement in an effective way which results in achievement of desired goals and objectives.

REFERENCES
Books and Journals:
Arnaout, B. and Esposito, M., 2018. The value of communication in turbulent environments:
how SMEs manage change successfully in unstable surroundings. International
Journal of Entrepreneurship and Small Business, 34(4), pp.500-515.
Avery, H., 2019. How to manage change creatively: unravelling the conundrum of business-
state relations. In Gulf Research Meeting 2019.
Bitzer, M., and et.al., 2021. Everything Is IT, but IT Is Not Everything–What Incumbents Do
to Manage Their Digital Transformation Towards Continuous Change.
Blake, H., 2019. How to manage employee wellbeing in a small business.
Dahlmann, F. and Roehrich, J.K., 2019. Sustainable supply chain management and partner
engagement to manage climate change information. Business Strategy and the
Environment, 28(8), pp.1632-1647.
Direction, S., 2021. Firm capacity to manage new trends: business model innovation can
increase resilience. Strateg Dir, 37(4), pp.15-18.
Foerster, E.P.J., 2018. Unravelling incumbents’ dynamics: How do ‘Greening Goliaths’
Manage Change? (Master's thesis).
Galli, B.J., 2018. Change management models: A comparative analysis and concerns. IEEE
Engineering Management Review, 46(3), pp.124-132.
Jayatilleke, S. and Lai, R., 2018. A systematic review of requirements change management.
Information and Software Technology, 93, pp.163-185.
Liang, J., 2018. How Managers Can Manage Change and Stability to Deliver Better Service
to Customers in the 21st Century. Journal of Finance Research, 2(1), pp.21-22.
Lyman, R.K. and Daloisio, T.C., 2018. Looking to manage change successfully? It is
dependent on alignment at every level. Development and Learning in Organizations:
An International Journal.
Parnell, B., Stone, M. and Aravopoulou, E., 2018. How leaders manage their business models
using information. The Bottom Line.
Sartori, R., and et.al., 2018. How do you manage change in organizations? Training,
development, innovation, and their relationships. Frontiers in psychology, 9, p.313.
Shevchenko, H., and et.al., 2021. SDGs and the ability to manage change within the
European green deal: The case of Ukraine. Problems and Perspectives in
Management, 19(1), p.53.
Usiak, W., 2021. How to manage your construction project while staying in business.
Visser, T. and van Scheers, L., 2018. Can family business managers manage family business
risks?. Management: Journal of Contemporary Management Issues, 23(1), pp.123-
137.
Zighan, S. and Abualqumboz, M., 2022. Dual focus: service-product orientation to manage
the change paradox following servitization strategy. Service Business, pp.1-27.

Online:
Organizational change management: 8 proven models to help navigate change, 2020.
[Online] Available through: <https://www.zendesk.com/in/blog/change-management-
models/>